Moeldoko EMPHASIZED All Government Agencies To Allocate 40 Percent Of Budget For PDN

Head of Presidential Stap Dr. Moeldoko emphasized that government agencies should spend 40 on domestic products. (Doc KSP)

Presidential Chief of Staff Dr. Moeldoko asked all government agencies to allocate and immediately realize a minimum of 40 percent of the procurement budget in 2022 for Domestic Products (PDN).

Moeldoko also emphasized that the realization of the procurement of PDN which is not more than 25 percent of the 2021 budget will not be repeated. Therefore, the Presidential Staff Office (KSP) will ensure that all agencies not only allocate a budget in 2022, but also realize the PDN procurement target.

"The government is pursuing the PDN target because domestic consumption is able to maintain economic growth. If the budget rotates domestically, the domestic industry will move, people's income will be maintained, and in turn it will maintain domestic consumption. Globally, the economy is currently being disrupted, we must keep MSMEs moving, mobile corporations and unemployment from increasing," said Moeldoko at the Coordination Meeting for the Acceleration of PDN Expenditures with 10 K/L, online in Jakarta, Monday, October 31.

President Joko Widodo has issued Presidential Instruction No. 2 of 2022 which directs all government agencies to allocate and realize a minimum of 40 percent of the procurement budget for Domestic Products.

To oversee the President's direction, KSP has formed a special team tasked with monitoring the realization of spending for these domestic products. The results of this monitoring will later be reported to the President.

In 2022, the allocation of all K/L expenditures for PDN will reach IDR 364 trillion. However, as of October 10, the realization has only reached 41 percent. Therefore, KSP asked K/L to accelerate, especially in 10 K/L with the largest procurement budget, namely the Ministry of PUPR, Ministry of Defense, Polri, Ministry of Transportation, Ministry of Health, Ministry of Religion, Ministry of Communication and Information, Ministry of Education, Ministry of Agriculture and Ministry of Finance.

In addition, there is a problem of data inconsistency between the Financial and Development Supervisory Agency (BPKP) and the Government Goods/Services Procurement Policy Institute (LKPP). Sometimes it is higher in BPKP data, sometimes it is higher in LKPP data. If it is not addressed immediately, it can cause problems," added Chief of Staff Moeldoko.

Responding to this, the LKPP said that it was developing an architecture for the integration of national procurement data. BPKP will also continue to try to synchronize data with LKPP and related Ministries/Institutions. The data collected will also always be updated periodically to be reported to President Joko Widodo.